Crippling The American Energy Sector

One of the problems in the economy today is the price of gasoline at the pump. Two years ago it cost me $25 to fill up my car, now it costs $50+. I am sure my story is not unique, and the cost of gasoline has a negative impact on everyone’s budget. There are very obvious ways to bring down the cost of gasoline at the pump–build refineries, drill everywhere, and generally develop a sane energy policy for America. One example of the impact of developing energy resources in America is the fact that North Dakota has an unemployment rate of about 3%. Why? The Bakken Formation, a geological phenomenon covering parts of North Dakota, Montana, and Saskatchewan, has an estimated 3 billion to 4 billion barrels of recoverable oil, only a tiny percentage of which has been tapped. As the state continues to recover the oil, employment grows and prosperity continues. However, even this prosperity is endangered by the Obama Administration. 

Erika Johnsen at Townhall.com reported that on Friday President Obama signed an executive order creating a a high-level task force to coordinate federal oversight of domestic natural gas development. What that means is that “the government is planning to regulate any energy industry we have not yet destroyed out of existence.”

The article reports:

The task force is charged with ensuring that rapidly growing efforts to tap vast natural gas supplies in the country’s shale formations, which require advanced drilling techniques including “fracking,” are “safe and responsible.”

The order seeks to find a balance between encouraging expanded domestic natural gas development, a position Obama has touted in a series of speeches in recent months, and ensuring that the administration protects the public. 

“[I]t is vital that we take full advantage of our natural gas resources, while giving American families and communities confidence that natural and cultural resources, air and water quality, and public health and safety will not be compromised,” the order says.

The Obama administration is taking new steps to increase federal oversight of hydraulic fracturing, or fracking, a drilling method that has helped usher in a natural gas boom but brought with it environmental concerns. 

The Environmental Protection Agency is slated to unveil final oil-and-gas air pollution regulations next week that would cut smog-forming and toxic emissions from wells developed with fracking. Separately, the Interior Department will soon float rules for fracking on public lands.

Unless we change the general regulation overload this administration has created, America will become a third-world country. If that appeals to you, vote for Democrats in November. If you love America and want your children to prosper, vote Republican. The future of our nation is truly at stake in 2012.

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Picking Winners And Losers With The Tax Code

One of the things that would be really good about passing Paul Ryan’s budget plan (it won’t happen–but it would be really good) would be that the government would lose its power to pick winners and losers in the American economy. That’s one of the reasons Paul Ryan’s budget will never pass–Congress and the President do not want to give up the power to control people through the tax code. However, every now and then, someone in the Senate actually does something smart in terms of taxes. The Senate (in a 51-47 vote)  has nixed the President’s plan to raise taxes on oil companies (which of course would raise the price of gasoline at the pump).

The New American posted a few thoughts on the Senate vote today:

“This bill is pretty simple: we end wasteful subsidies to the big five oil companies and we use those proceeds to invest in clean energy, in creating jobs, and reducing the deficit,” Menendez said Monday when introducing the bill. “I think the American people are sick and tired of paying ridiculously high gasoline prices at the pump and then paying big oil again with … taxpayer subsidies.”

However, as Bob Adelman asserted last May in The New American, there is a grave difference between tax breaks and what Obama and Menendez characterize as “subsidies.” “The echo chamber of the mainstream media and liberal Democrats merely confirms their attempt to confuse the issue to promote their agenda,” Adelman affirmed. “Subsidies and tax breaks are different entities entirely, and getting the terms wrong means getting it all wrong.”

As stated above–these are not subsidies–subsidies are what we are paying to alternative energy companies that keep going broke or shipping their business to China. Not only are these not subsidies–they are tax breaks that all companies routinely get.

The article concludes:

But Menendez goes a step further, and calls the oil tax breaks “wasteful subsidies.” Is this contrary to the clean-energy industry’s un-wasteful subsidies? Obama’s Energy Department has dished out billions of dollars in “green” subsidies, to companies like SpectraWatt, Eastern Energy, Beacon Power, Evergreen Solar, and the controversial Solyndra — which all ended up in bankruptcy. These five companies, along with seven others, are now in financial disarray, after collectively reaping more than $6.5 billion in taxpayer-backed government assistance.

In effect, one might suggest that Obama and Menendez are pointing their fingers in the wrong direction.

The Obama Administration has never actually had a successful energy policy. It is unrealistic to think that they will develop one at this point.

 

 

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Something To Think About In November

Daguerrotype of the south front of the White House

Image via Wikipedia

I was listening to Bill Bennett this morning and MarcThiessen was one of his guests. Bill Bennett is one of my favorite radio shows because issues are discussed–not screamed. Mr. Thiessen was discussing his recent article in the Washington Post.

The article deals with some of the consequences (unintended and intended) of a second term for President Obama.

The article states:

Electing a transformational conservative president may not be in the cards this November — but stopping a transformational liberal president still is. Consider the consequences if Obama gets a second term: Obamacare will not be repealed. The unprecedented levels of spending in Obama’s first four years will become the new floor, as America sets new records for fiscal profligacy and debt. Job creators will face massive tax increases, and more Americans will come off the tax rolls — resulting in fewer citizens with a stake in keeping taxes low and more with a stake in protecting benefits. Government dependency, already at record levels, will continue to grow. Four lost years in dealing with the entitlement crisis will become eight — digging us into a hole from which we may not be able to emerge. Obama, unworried about the impact of gas and electricity prices on his reelection, will finally wage the regulatory war on fossil fuels the left demands. He will unleash the Environmental Protection Agency to impose crushing new burdens on U.S. business. His administration’s assault on religious freedom will go on and expand to new areas. The Defense Department will be gutted, with cuts so deep that America will no longer be a superpower. Obama could have the opportunity to appoint more liberal Supreme Court justices, ending the Roberts court in all but name for a generation.

Oh, and the oceans will continue to rise.

If President Obama is elected in November, the America that we have all grown up in will not exist by the end of his second term. Even if you do not believe me, there are enough non-partisan people saying similar things to at least cause you to pause and consider the idea. Unless you are willing to take that risk, please vote Republican in November.

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Exposing The Lies In The President’s Energy Speech

Yesterday Investors.com posted its fact check on President Obama’s recent energy speech. They noted five lies and posted the relevant facts.

Here is the summary:

1. The President claimed that he was focused on production. Actually, the current increase in production is due to the actions of the Bush Administration before President Obama took office. President Obama has closed down exploration and slowed down the issuing of permits for offshore drilling.

2. The President stated that America has 2 percent of the world’s oil reserves, but consumes more that one fifth of the world’s oil. Actually, the U.S. has a mind-boggling 1.4 trillion barrels of oil, enough to “fuel the present needs in the U.S. for around 250 years,” according to the Institute for Energy Research. The problem is the government has put most of this supply off limits.

3. The President stated, “Because of the investments we’ve made, the use of clean, renewable energy in this country has nearly doubled.” According to the Federal Energy Information Administration (EIA), production of renewable energy increased 12% between 2008 and 2011.

4. The President stated, “We need to double-down on a clean energy industry that’s never been more promising.” According to the EIA, renewable energy will account for just 13% of U.S. energy production by 2035.

5. The President stated, “There are no short-term silver bullets when it comes to gas prices.”

The article reminds us:

Obama could drive down oil prices right now simply by announcing a more aggressive effort to boost domestic supplies. When President Bush lifted a moratorium in 2008, oil prices immediately fell $9 a barrel.

President Obama’s nose is growing.

 

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